tv Bloomberg Best Bloomberg May 6, 2017 8:00am-9:01am EDT
♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. the fed meats, but doesn't move. brexit talks take a tougher tone of president trump tells bloomberg what is on his mind breaking up the big banks. >> he gave us a sense there is a decision or nothing eminent in terms of handling wall street. >> money managers talk exquisitely about their business. >> we're seeing money come out of active management heading towards passive structures. >> give me a sense of what you learned from valeant? >> it is very expensive. >> a conference brings together a who's who of leaders in global
finance. >> we are considering ultralow bonds. we did not meet expectations this quarter. >> former fed cheapened bernanke questions the timer -- questions the timing of the tax cuts. >> plus, a big mess for apple. another greats quarter. >> missed by 50% in the stock went up >> it is all straight ahead on "bloomberg best." ♪ >> hello and welcome. i'm julie hyman. t."s is "bloomberg best
on monday, president donald trump shared his thoughts on a number of political and economic issues with bloomberg news. his comments made headlines and move markets. in an interview with bloomberg news, president trump he is willing to meet with the president of north korea and he considering breaking up the big banks. pres. trump: we are looking at it right now, and dodd-frank is going to be very, very, sears the changed so the banks to go back to loaning money. erik: can you talk about the context in which he discussed that? up that i diding bring it up late in the interview because we spent so much time talking about taxes, health care, and north korea. but we thought it was important to get the question on the record. he gave us a sense that there is on wallncement imminent street in changes to dodd-frank.
i wish i could tell you much more, but he did not show as a whole lot more than that on that question. falling afters hours after porting q2 earnings that beat expectations. the iphone has always been the moneymaker for the company, but .ales were flat year-over-year not surprising given the anticipation for the next iphone coming this fall. we're expecting a big design overhaul there. applegenerated -- announcing that he generated -- on services. let's talk about the iphone. it is driving two thirds of revenues for the company. are you concerned that sales were flat? >> no. when you look at the quarter overall, it was fairly mixed. the one negative was those iphone numbers. but it is one of those quarters where you can only put so much emphasis on the iphone. the entire mishear can be attributed to the fact that
consumers are holding off for the next iphone generation device. you are seeing a little hit on the stock price, but that is something we would look past. that tim cooke pointed out is that people have been making too much information about the iphone, and there is a lot of hope and expectation and they may be holding off on a purchase. if you look at shares -- both trading in taiwan, the two largest companies in taiwan, there is a lot of hope and believe that this is going to be something in the third quarter. unfortunately, it is hurting in the second quarter. when it comes down to is, will , or will be realized they be a disappointment in the third and fourth quarter when the phone finally does come out? no surprise, no move today in an and unanimous vote, the fed kept its interest rate unchanged, but they did
acknowledge that the economy has slowed in recent months. although, they go on to say and their statement, that will change. the committee views the slowing and growth during the first quarter as likely to be transitory. near-term risks to the economy, the statement says, remain roughly balance. onehe market was pricing in additional hike this year as early as june. did you see anything in there that should change anybody's mind about what to expect from the fed? >> not much. inking about a reduction normal, economic growth, which i assume is 2% to 3% this quarter. and talking about gradual rate hikes. when you speak to one in terms of what the market expects, then the fed with their doubts -- with their chart looking at 2% to perhaps you percent, i expect
the market has it more right than the fed. gop healthe has any care bill successfully voting for the repeal and replacement of obamacare. the bill now goes to the senate. pres. trump: as far as i am concerned, your premiums will start to come down and we will get this past through the senate. i feel so confident. to 213.ill passed 217 speaker ryan had a margin of about 21 votes could spare and lost 20. mitch mcconnell has a margin up two vote he could lose. this will be an uphill slog to get anything through the senate because there are a handful of moderate republican senators seem less likely to budge. it is something that republicans are promised consistently, constantly in every election for the last seven years. they won the house, the senate, the white house. there is a will to get to guess. o yes. >> will end up happening to the
senate --they will craft their own entirely new bill. they may take pieces of the house bill, but they do not want to own that house bill. that house bill holes terribly -- polls terribly. there is a lot of negotiating to go. it won't happen in an you weeks. the payroll's report from d.c. now. april,000 jobs in beating estimates of 190,000. unemployment down to 4.4%, that assessment 2007, almost a decade. a solid rebound from the earlier reports. goode job's number is a number. and the underemployment number came down. it was a substantial change. there is something in there for everybody.
it gently suggest that the fed continues on its course of gradual increases, and that of course, is the primary question -- what is gradual mean to the market? gradual means 40 basis points .or the year in term >> i think it is consistent with a hike in june and with three heights overall, because job creation remain solid and because the unemployment rate are down. in terms of the bigger issues, wage growth is to relatively sluggish and the participation rate ticked down. so, consistent with the fed hiking, but not consistent with economic takeoff. >> the president is pleased that we are growing jobs. he is very pleased. he is pleased that our unemployment levels are at 10 plus year lows. those are good numbers for him. he does not like where rages are. he wants americans to have more
disposable income. he was to grow the economy. still ahead as we review the week on bloomberg best, conversations from the milk and institute global conference, including interviews with treasury secretary steven mnuchin. exclusive at ken's interview at what went wrong with valiant. and most of the top business headlines. april was another month for u.s. auto sales. >> these of the three biggest players in the u.s. market and they are all down more than analysts participated. julie: this is bloomberg. ♪
of the week's business stories on capitol hill in washington where an agreement on a spending bill averted a u.s. government shutdown. >> let's find out if we have a government functioning in washington. looks like they will not shut down after all. congress has agreed to a plan to fund through september. what happened? >> they kicked the can down the road. i can tell you, they suggest they can really only get by doing these one week extension for about two to three more weeks. at some point, they will have to pass a longer deal. what exactly is in this budget? a $15 billion down payment on the military, was president trump has called for? there are $2 billion increases for health research, something that president trump had said he wanted to get rid of? there is also $1.5 billion for border security? alongs not an increase
the u.s. mexican border, the wall. this is a bipartisan deal that perhaps several folks had anticipated. >> democrats scored a very big victory here. there is no cuts to the sec or ftc funding. basically, it is a big win forecheck -- win for chuck schumer and nancy pelosi. this means this thing is all but done and a government shutdown is off the table. >> the democrats have been trying to claim victory on this, which is a strange way to look at a bipartisan discussion. unusual for one group to walk out and start spiking the football saying we won and killed the other guys. >> a lot responding to two tweets the president sent out this morning. the reason is that we need 60
votes in the senate that were not there. the headline -- our country needs a good shutdown in september to fix the mess. >> we have seen director mulvaney three times in the last few hours talking about the budget deal. he has used a different tone in each appearance, for saying this was a great deal, at sign a bipartisanship between the democrats and republicans, talking about the white house got a lot of its priorities into this bill. the most recent briefing was his most incendiary and most active his voice andised took on the democrats saying, the democrats are tried to take credit for a win that he would not stand for that. tougher asalks get davis says he is willing to walk away if provoked. he made clear that the u.k. will
not pay a bill from the european union. the clock is ticking and time is short to reach that deal with britain. how do we get from 16 to 100? how is is playing a politically? >> that is the question people are asking, jonathan. they are scratching their heads over these numbers that are flying around. certainly, none of this has gone down very well. the mood was already pretty grumpy after that leak. the mood coming out of whitehall not wanting to compromise. david davis coming out saying the u.k. will threaten to walk away from negotiations. the mood is london is pretty grumpy right now. >> sticking with the economic
j.p. morganexit, chase is planning to move hundreds of london-based banks to luxenberg. the move would ease easy access j.p. morgant after did warn us. jamie dimon warned us this would happen. the beginning,y isn't it, jonathan? jonathan: they are giving us more details. stratford, dublin, luxembourg. the chasm between europe and the u.k., it is very clear. they are trying to women in business. top of that, we have a year denominated clearing debate. france is being very vocal. >> a slump in the u.s. auto industry shows no sign of letting up with sales at all six
of the biggest carmakers falling again in april could ford and honda posted the steepest year of declines. gm fell on the 6%. chrysler fell 6.6%. >> it is not looking for the whole industry. these other three biggest players in the u.s. market. they are all down more than analysts anticipated. definitely some softness playing out. there were a few bright spots. jim's retail sales were up a gm's retail sales were up a little, but there's not a lot to hang your hat on. there is not enough growth in suvs to make up for the plunging auto sales. >> we have to see how may in june play out, but it looks like we are past the peak in an industry that is on the downside of a plateau, and maybe starting to contract. fox that may be
trying to acquire tribune media. 21st century fox is teaming up with blackstone to outbid sinclair for tribune that had a market cap of $3.2 billion. >> this is all about getting scale and the television business and the real catalyst is now there is a republican-controlled fcc in washington, the expectations that all the shackles will be taken off in that this is an industry ripe for consolidation. everyone is talking to everybody and looking to get bigger. sinclair had been the most dominant player in the television business in terms of m&a, consolidation, and they were considered to be the top buyer for tribune. >> for tribune broadcasting so 20th century. why would someone to own more of a dying business? >> advertising growth is still growing, but the big change for the television industry has been retransmission revenue. those are revenues that flow to the tv station owners in the cable operators for the right to carry those deviations -- those
tv stations. that is revenue they have never had over the seven years of their existence and that is made a good business even better. >> metals extending their biggest daily punch -- daily plunge. the china data are softening. move?s behind this metals >> we are looking at iron and copper in the moving for good fundamental reasons. we had data out of australia showing fresh supplies coming into record stockpiles. on copper, stockpiles building in london. that is a bad sign. but let's not get carried away. -- iron or is well over 200%. this is a very profitable
business. its worsts coming off day since opec announced cuts in november. slipped to $45 a barrel. down 7%. alone, we are >> this is all technical, nothing fundamental. nothing has changed in the market. market gotdden, the bearish and we had a record amount of trading for a couple of minutes. a record amount of open-ended and shorts coming into the market. how self fulfilling is this? >> it is never possible to call a bottom, but this is a good buying opportunity. the market is tightening up. we will see more robust inventory growth. there'll be a shift of financial
♪ julie: welcome back to "bloomberg best." i'm julie hyman. this week, two of the world passing was prominent fund manager spoke exclusively with bloomberg television. tim griffin and bill ackman. let's begin with tim griffin who whodown with erik schatzker discussed recent entrenchment and hedge fund industry. in the spaceeen for almost 30 years now, and over the 30 years, it has been an acute explosion in the size of the industry. the number of funds, $3 trillion of capital now deployed in hedge funds. it is been unbelievable growth story, and like many grow stories, we are going through a
period of entrenchment as the dynamics of the plainfield are --nging could it is harder plainfield are changing today. it is causing the second tier players to fall by the wayside. we saw this from the dot com bust. erik: is your position, would you describe it as offense or defense of? tim: it is offense. erik: in what way? tim: in the quest for talent. there are a number of really talented individuals we can bring onto our team in this environment. with firms shutting down, there are a lot of good people that we want to bring into the citadel. with firm struggling, there is a good chance to bring firms into the citadel. erik: how much longer do you think this shakeout in the hedge fund industry will be over? tim: it is not a shakeup for the hedge fund industry, but for
active management. right? we see the rise and etf and index products. we're seeing money come out of active management heading towards passive structures. as it happens, the money that passed the structures is not -- estimate the markets less efficient grading a larger profit pool for those to remain. we will find a new nuclear realm over the years to come. the firms that are best able to assemble, analyze and corporate information into their decision-making processes will continue to. >> we have a company that launched a most 14 years ago. it first 12 years, generated 20% -- 21% on equity. he made a really bad acquisition
-- then we made a really bad acquisition and brought that down to 13%. they traded fairly close. as a result of that bad acquisition, we dropped a significant discount. >> how much did it cost you? bill: about 30% or more. we were covered about 20% from the bottom. but the market is still not recognizing it. it is imperative with the discount, so you look at the equity 15, the average is about 13% of a similar period. but the average ftse company trades at a multiple of that. we treat today at .58%. we are liquid. we operate like an investment holding company. we don't take corporate holding tax. >> this is clearly what you think is a great idea. give me a sense of what you learned from valeant.
>> what i learned is that they are very expensive. this is a strategy where historically, we bought a large stake in the company and on the board of directors. had yay or nay over decisions. 2014, had a very successful transaction. he made a mistake with the path investment in the company. that was a big mistake in our history. francine: does it mean that you will stay away from pharmaceutical companies? ken: probably stay away from pharmaceutical companies. julie: coming up, more conversations from the milken institute conference. u.s. commerce secretary wilbur ross on nafta. when it excellence he was front and center, an interview with ben bernanke put in a few good
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♪ you added 9 million users last quarter. did it come from donald trump? >> we can't save focus on politics it is really event driving the group. we don't have a way to measure that. twitter benefits when influential people use our platform to tell with happening. we encourage that, we love the discussion, with of the conversation that happening. the better happens, we will be at showing you with happening in the world. we would love it every world leader would use it as a primary mechanism to talk to their constituencies. julie: that was twitter cfo
anthony noto with emily chang. many of the world's top investors, executives and financial policymakers spoke with bloomberg television at the milken is to global conference in beverly hills this week, including leaders of the trump administration's economic team. let's begin with treasury secretary steve mnuchin. hean interview, confirmed the u.s. is thinking about issuing ultra long-term bonds to fund infrastructure programs. we are studying ultralong bonds, yes. that is something we are considering at treasury. we have a working group looking at it. we think it is something that could absolutely make sense for us at treasury. on the infrastructure side, the president is determined that we do it major investment. they are a huge part of the infrastructure that needs to be rebuilt, and we will do that are different ways.
public private partnerships and financing so we don't believe in the budget by $1 trillion. >> do you think fundamentally governments look at infrastructure in the wrong way? every thing gets chucked and a general accounts. 70you are running a company, counted differently the short-term cash flow. is that one of the restrictions you face? : steve mnuchin absolutely. when you're running a business, you have an income statement and a balance sheet. if you're making an investment that has a 20 year or 30 year payback, he done extensive all in day one -- don't expense it in day one or as a complete expense. budget treats everything has cached so nice it more difficult. >> if he had to bring them into finance at infrastructure, what is the main ploy you would make? we've seen a lot
of interest from our counterparts in investing in the united states, whether it's an infrastructure or other opportunities. i think this is something we will be a will to get done. agreemente is an old -- nafta is an old agreement. it does not reflect the current status of either the mexican economy or the american or the canadian. at a minimum, it needs updating. second, it has the problem with the rules of origin. mainly how much of raw material can be brought into from outside nafta and get the tariff benefits of nafta. in automotive for example, they do it part by part. some of those parts are not even used in cars anymore because technology has changed. there are a lot of changes like that that are needed. a lot of things that were not even thought about. digital economy not really dealt
with. services economy not really dealt with very much. some of the liberalization mexico is made to its natural resources, not dealt with at all. there was a lot of stuff to do. at the end of the day the objective will be twofold. increase total trade and reduce our trade deficit with both mexico and to a lesser degree canada. >> there was a lot of talk last week about pulling out of nafta altogether. ditching it versus renegotiating. what is your sense about the possibility of really just getting rid of the whole thing right now? unfortunate what's is it blew it had begun as a sensible discussion of alternatives into something beyond what it really was. bad, all the leaks that have been occurring. they seem to be a fact in washington. people told me there is no such
thing as an off the record conversation. but the fact remains the president has made the decision to try to negotiate nafta all over again. he's also make clear if we can't do that, his inclination will be to withdraw. executives from some of the world's leading financial firms joined bloomberg for interviews at the milken conference. here are some of the highlights. 'starting with john micklethwaits conversation with pimco ceo many roman. he explains why they retain an edge in the market. incomeincome -- fixed turns over 10 times with the s&p 500 turns over. it's also the fact you have noneconomic agents. think of ecb and the fed is people who buy bonds for other reasons the neck of investment. and you have the buyers who are
accounting driven. thing insurance companies -- think insurance companies our veterans funds. the opportunity for performance we think is much larger in fixed income. >> there was one possibility that someone could come in and cause problems. trying to push things towards passive because it think it's cheaper. --of course they could be there can be legislation that would push for the lowest possible price. we think over the business cycle we can add 1.25% to 1.5% alpha. when you compound of this over the lifetime of the retirement account, the difference is quite significant. when you consider we are talking to 2.3%,5% to 1.5%, the amount is quite substantial. >> will pimco be as american as it is now or a much more global
firm? >> i think there is an urge for globalization across all businesses in america. the big unknown is how big it can be. it is a quite exciting but it's hard to size. -- it'serry difficult very difficult for from lakers to get in at a moment. >> but things may change. there is growth in emerging markets. we think latin america will be in exciting place to invest. we think we will have more resources going forward. ♪ >> we did not meet expectations is quarter. it is not the first quarter we didn't. >> it doesn't happen very often. >> but it happened this quarter. we have a terrific franchise into good about our franchise. there is no risk management issue. we feel good about the word we're doing -- work we are doing for our clients. >> equities was that the star performer either. five years ago, goldman's
equities was five times bigger than morgan stanley. >> the businesses are weighted in different ways. we have an equity franchise, strong position across institutional and prime brokerage. one of the places we are not interested in working tammy ants. qu morgan stanley has a bigger position in the business. it?: what can you do about >> is not a straightforward business. while we are investing we want to be in the business. we have been all of it more cautious -- we have been a little bit more cautious but we are building capability. morgan stanley has a platform that's a little larger. if you look at the institutional business, we have a very significant institutional leading equity franchise. erik: can you take some of that
away from morgan stanley? >> i think there was an opportunity with a set of clients we don't do as much business with to increase market share. we are focused on that. by continuing to invest in technology and make sure it's developed meaningfully over the course of the last year to continue to develop and is competitive. we will start to grow our market share with those clients and it is something we will focus on. julie: in another exquisite interview, tom went one-on-one with former federal reserve chairman ben bernanke and washington, d.c. among the many topics was tax policy. tom: are we victims of our cultural economics? almost our cultural revision where he can't spend money when we need to? bernanke: its ironic because now we are talking about big tax cuts. at least from the perspective of putting people back to work, it would make more sense to have more tax cuts and spending in 2015 or 2012 when i was asking for that -- 2013 or 2012 when i
was asking for that. the case today is a little weaker. there was always a case for improving the quality of the tax code, making it more efficient, fair, simple and so one. in terms of adding demand to economy, that would've been better a few years ago. cuts tax cuts tax he can support, and are they something within the gilded age where all the benefits go too narrowly to the affluent? bernanke: if i talk about the proposal for personal income, i guess i have a couple of concerns. it is more demand side oriented and supply-side. it will generate more consumer spending. it is not obvious it will increase the potential of the economy very much. for five years ago we could've used more demand side stimulus. today is not as obvious we need that. the other aspect of it is that as written down -- we don't know
the details and it could create a much bigger deficit. i'm not opposed to increasing deficits under certain circumstances, but why not think about improving the efficiency of the corporate tax code or doing infrastructure? tom: do we have a risk of a leaderless fed with president trump? bernanke: i think his resume to us to say that presumptuous to say. he could reappoint janet yellen. it would certainly be from his perspective a reasonable, sensible thing to do. he is highly competent, she has done a good job, she has the confidence of the markets. but whoever is appointed, i'm sure, will certainly were carefully with the rest of the fomc. there is a reason why there are 70 people on the federal market committee making those decisions, including seven members of the board. and high-quality staff that provides a lot of guidance and help. we are not quite in a 1928 situation.
♪ julie: welcome back. to spend a big week for corporate earnings reports around the world. we begin with silicon valley and results from facebook. >> facebook shares are down after reporting earnings that missed expectations that revenue that topped estimates. they have 1.9 4 billion monthly active users, of from 1.8 billion last quarter. another they contributed to overall revenue is mobile advertising. that accounted for 85% of ad revenue think stanf -- thanks
to histogram's rapid growth -- instagram's rapid growth. >> we are seeing strong growth across those. >> those are incredible numbers. every quarter it seems like facebook has another "great quarter." it's hard to see whether my feet problem. revenue number looks great. the user number looks great. there is a lot of momentum at facebook. our forecast is the grant will have $1 billion in ad revenue. that will be over 1/10 of facebook's total revenue of the number comes true. at the instagram is a really interesting platform for marketers. reallye still intrigued by it and how to reach the youth audience prevalent in his to graham. >> let's talk about the earnings. france's biggest bank recorded
earnings that beat estimates. >> it is a solid result for the first quarter. is up 4.4%. it even up 13%. this is a tribute to the business performance his revenues are up 7%. if you will get ratios, it continues to improve to 11.6%. basically that's good. to top it off, last but not least, we just decided the bank will be mutual by year-end. -- neutral by year-end. >> $5.94 billion,. beating expectations >> not being facetious, i be happy met if i was up 2017 right now. the end of the year to see if you get 4% revenue growth of the course of 2017. a very good start for the first order. that's the guidance we are holding for the market as he
-- as we move into discussions over the next few days. >> 90 been watching the earnings, the first of the us trillion big banks reports this week. how does the numbers stack up? >> they stack up reasonably well. i will give he some numbers in australian dollars. net profit of 6%. cash profit is the one that's often watched with the banks. of $3.1 billion. of 23% is still considered a slight mess. these numbers build on the units, of anz domestic and over the past few months they have been gently letting go asian assets. net interest margins falling from 2.07% to 2%. that debt charges also down to $720 million. >> we are watching the bank of singapore after southeast asia's biggest lender reported profits that the estimates. you beat reports last week as
well. we have seen some better-than-expected earnings fronts. a sine thomas rhett on the improvement? >> there was a turnaround for dbs. they had a weaker fourth-quarter. -- they came in at a 1% gain. dbs is seeing a bigger fiction wealth management. i think the common thread is that those oil and gas debt problems which the singapore banks have had, they seem to be under control. >> aberdeen asset management reported outflows in the most recent six-month period. assets under management plan to about 5%, 108 billion pounds. >> the first quarter we've had for about four years we have seen really good positive flows and emerging-market and emerging-market debt. it's been a positive order for
us, probably the best for three or four years. francine: d think the trend will continue? martin: people are beginning to see volume in emerging markets compared to the developed markets. places like india with a growth rate. investing in equities and bonds and more generally in emerging markets globally, looking for volume. >> let's talk about bp. adjusted net income, $1.51 billion. it be forecast by $2.7 billion. producing cash or not enough to cover through the issues. , dividends, and the gulf of mexico. >> if you look at bp or other big oil companies like chevron, the result would be very good. they have increased net income that be wall street estimates. and the cash flow has gone up.
from a problem is bp cannot generate enough money to cover those three. and they arend, unique in that they need to continue paying the government for culpability. bps approaching the limit of is comfortable with. 30%.atio is between 20% on previous quarter -- this quarter, 20%. -- 28%. >> a five-month low for producers like shell. reporting first-quarter earnings today. let's start with shell. is becoming a cash generating machine? >> more so than it was previously. i don't we are back to the boom times. they are doing the right things. investors like it, but we are now back to that >> validating the chief executive decision in the massive acquisition of bg group? >> i think it does.
this is a long-term investments at we will have this conversation again in five years. >> things are looking better for statoil, three consecutive sessions of adjusted losses before today. first quarter profit climbing. as it turned a corner? >> it's a long-term process. they are rationalizing the assets and looking old make the most money. that will not happen in two or three months. that will be over several years. >> tesla confirmed its highly anticipated model 3 remains on schedule for output to begin in july. this comes as company reported a first-quarter loss. due earnings actually matter or in this case losses matter when it comes to tesla? >> obviously not. a company like ford misses earnings by a penny or nickel and the stock gets clobbered. tesla missed by 50% and the stock went up. they do not run out of money and the model 3 is on track.
♪ >> you automakers talking about u.s. sales. this is a chart going back to 2011 of u.s. auto sales. you can see it in writing, rising, rising, in me get to this year and there has been a drop off coming in well short of expectations on the big names for gm, toyota, all a little behind estimates. >> there are about 30,000 functions on the bloomberg. we always enjoy showing you are favorites on bloomberg television. maybe they will become your
favorites. you will findr useful, cute uic g -- quic . here's a quick take from this week. >> the palestinians must recognize the jewish state. >> the election of donald trump is embolden israeli prime minister benjamin netanyahu. just weeks after trump's inauguration,'s government announced it would build the first new settlements and a quarter century in the west bank. breaking the decades of u.s. policy, the trump administration says it does not view existing settlements as an obstacle to peace in the region. but responding to israel's announcement, u.s. officials said expanding settlements may not be helpful in achieving peace. >> i would like to see a pullback on settlements for a little bit. we will work selling out. >> here is the situation. the west bank is populated mostly by palestinians who hope to make it part of an
independent state. palestine. since israel comes with the territory half a century ago, israeli numbers have increased. since 1995, the population of settlers has grown four times faster than in israel itself. rather hawkish more dovish, the government's support the expansion of settlements. why do israelis choose the settle in the west bank? there are three main reasons. one is religion. je .2ws theous bible -- jews say the land was entitled to them by god. -- zero countries invaded israel. three, affordability. others like the relatively high standards of living made possible by government subsidies. according to the international court of justice, israeli settlements are in breach of international law. here is the argument. barriers, but present in the
presence of israeli+++ difficult for palestinians. both palestinians and some israelis argue settlement play into a bigger problem. they prevent piece by dividing the land left for the establishment of a libel palestinian state any peace agreement will likely hinge in israel undertaking the tough task of removing tens of thousands of settlers in the west bank israel has removed settlers in the past but they were smaller numbers even if every single settlement were to be dismantled tomorrow peace would not be obtainable without both sides technology uncomfortable truths and making difficult choices. >> choices as to where to draw borders, how does your jerusalem, and how to ensure security. ♪ julie: that was just one of many quick fix you can find of the bloomberg. you can find them at bloomberg.com along with all the latest business news and analysis 24 hours a day.
♪ david: there were two incidents where you almost lost your life. it wentaeus: luckily over the a in contrast rather than the a in army. david: you did 50 push-ups. mr. petraeus: the only time i ever stopped at 50. david: you had people who worked directly for you killed in combat. mr. petraeus: it was a chilling experience. if the president calls on you to do something, i think you do it. david: people wouldn't recognize me if my tie was fixed. just live this way. all right.